Pathzero, an Australian firm specialising in the measurement and management of financed emissions, has raised AU$8.6 million in a Series A+ round.
The round brings total funding to A$15.6 million, led by VC firm Carthona Capital, with participation from Clyde Bank Holdings, Antler and individuals.
The company has developed Pathzero Navigator, a carbon reporting and analysis tool created specifically for financial institutions to measure, manage and disclose the financed emissions of their investment portfolio.
The tool is used by firms including StepStone, Hesta and Carthona Capital, connecting financial institutions to their portfolio companies and facilitating the secure flow of carbon information between trusted parties.
The funding comes as a consultation paper is issued by the Australian Treasurer outlining that the first mandatory requirement around climate reporting could be in place by 2024-2025.
Carl Prins, CEO, Pathzero, says: “Since the roll-out of Navigator we have seen immense interest from the market and have closed some cornerstone deals. This interest reflects the critical need for technology that enables collaboration between businesses to solve the Scope 3 challenge at scale.
"The gamechanger for us has been to go beyond carbon accounting and create a carbon information network allowing firms to engage and collaborate with their portfolio companies to bring down emissions.”